Question

Daschle LLC completed some research and development during June of the current year. The related costs were $60,000. If Daschle wants to capitalize and amortize the costs as quickly as possible, what is the total amortization expense Daschle may deduct during the current year?

A. $0
B. $6,500
C. $7,000
D. $12,000
E. None of these

Answer 1

To capitalize and amortize the research and development costs as quickly as possible, Daschle LLC may deduct the costs over the useful life of the project. The total amortization expense for the current year would depend on the useful life of the research and development project.

Step-by-step explanation:

To capitalize and amortize the research and development costs as quickly as possible, Daschle LLC may deduct the costs over the useful life of the research and development (R&D) project. The total amortization expense for the current year would be calculated by dividing the costs by the useful life of the project.

Let's assume the useful life of the R&D project is 6 years. In this case, the total amortization expense during the current year would be $60,000 / 6 = $10,000. Therefore, option E, None of these, is the correct answer as none of the given options match with the calculated total amortization expense.